[All Steps] The Potomac Grinders Company purchases a component that is assembled into several models of their grinders. The fixed ordering cost for each
Question: The Potomac Grinders Company purchases a component that is assembled into several models of their grinders. The fixed ordering cost for each purchase is $15, and the purchase price is $ 30 per unit. The company estimates its inventory carrying costs as \(25 \%\) per year, Annual demand is 2,000 units per year.
- What is the optimal quantity to order each time?
- What is the annual ordering cost under your plan?
- What is the annual holding cost?
Deliverable: Word Document 
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